Budget fails to kickstart green building say builders

Yesterday’s Budget was a disappointing one in terms of kickstarting the Green Deal retrofit programme, according to builders organisation the Federation of Master Builders.

The organisation would have liked to have seen additional incentives such as cuts in VAT for energy efficient repairs, stamp duty or council tax to make Britain’s homes greener and more energy efficient.

FMB director general Richard Diment, said: “The Chancellor missed an opportunity today to support the Green Deal and kick start consumer demand to make our homes greener. Without creating demand in the market for energy efficient improvement it is difficult to see how the Green Deal will succeed when it starts in the autumn of 2012.”

While FirstBuy, the government-backed shared equity scheme to help 10,000 first-time buyers is a welcome boost, Diment says he doubts whether it will help the tens of thousands of small house builders who are struggling to survive in the current market. However, he said that the announcement to simplify the planning system is long overdue – ” this coupled with the lack of finance is stifling the house building industry which is delivering half the amount of homes that we need every year to meet current demand.”

Diment added that small building companies who have been burdened by excessive regulation and red tape over recent years will welcome the announcement that there is to be no new regulation on firms with fewer than 10 staff for three years. “However, to be really effective it would be helpful if the Government could go further and cut the existing amount of red tape which is impacting on small businesses.”

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